Opalesque Industry Updates - 3A SA, the alternative investment division of the SYZ &
CO Group, announces today the launch of a new UCITS III fund of hedge funds.
This type of product preserves the benefits of a hedge fund whilst offering the
additional advantages of a well-regulated environment, especially with regard
to transparency and liquidity. This new fund, 3A Dynamic UCITS III, is aimed at
professional clients only and will not be marketed to the retail market.|
A new generation of alternative funds
Fortunately, a new generation of alternative products, the UCITS III alternative funds, provides an effective answer to this problem by being fully compliant with the latest regulations on European investment funds. Apart from a rigorous legal framework, these products have the advantage of being recognised by regulators and are therefore eligible for investment from insurance and pension funds. They also benefit from a favourable fiscal treatment in most European countries.
The universe of such hedge funds is increasing rapidly and at present there are approximately 200 such hedge funds. Encouraged by investors and driven by the growth opportunities in this sector, most of the larger alternative managers are positive about offering this type of product.
3A Dynamic UCITS III: a UCITS III fund of hedge funds
- Strongly-regulated framework. The underlying funds comply with strict constraints in terms of diversification and risk control. The key functions, such as custodian or administrator, must be segregated and are performed by independent companies.
- Transparency. The underlying funds must meet high standards of disclosure, particularly in terms of investment policy.
- Liquidity. 3A Dynamic UCITS III offers bi-monthly liquidity (every fortnight), in line with the liquidity of its underlying funds.
3A manages USD 2.1bn in hedge fund investments. In addition, 3A provides analysis and due diligence on an additional USD 4bn for SYZ & CO. www.3-a.ch